4/3/2025

Murakami-Linked Activist Investor Builds Stake in Fuji Media

Bloomberg (04/03/25) Sano, Hideyuki

Investors with ties to Yoshiaki Murakami, Japan’s most well-known activist, bought a 5.2% stake in Fuji Media Holdings Inc. (4676), adding pressure on the company to further overhaul its management. The investors, including Murakami’s daughter Aya Nomura, disclosed that they may make important proposals to management, according to a filing to Japan’s finance ministry. Fuji Media has come under criticism for what many investors and sponsors see as a poor handling of a sexual harassment case, forcing top executives to resign in January. Its stock price, however, has risen sharply since the harassment scandal was reported widely, as investors bet the incident will lead to a management revamp and better corporate governance. Japanese asset management firm Rheos Capital Works Inc. unveiled a 5% stake in February, calling for the board to bring in younger talent. Fuji Media said in late March that it would review its asset holdings and streamline its board, with former chairman Hisashi Hieda stepping down. For Murakami, this is the second time he has wrestled with the broadcaster, after a high-profile battle two decades ago when he bought Nippon Broadcasting, which was its parent company. Fuji Media shares rose 8.7% on Thursday, bringing its year-to-date gains to 73%, even as the broader Japanese stock market plunged on worries about US tariffs. “As Fuji Media is under pressure to change, they may have to swallow tough requests from shareholders,” said Rieko Otsuka, strategist at MCP Asset Management. “That also means there could be improvement in terms of governance, asset utilization and management.”

Read the article

4/3/2025

Lamb Weston Beats Quarterly Estimates on Cost Cuts, Shares Jump

Reuters (04/03/25) Mistry, Anuja Bharat

Lamb Weston (LW) beat third-quarter revenue and profit estimates on Thursday, as the frozen potato products maker benefited from its cost cuts and regained sales it had lost last year during its transition to a new database. Its shares rose about 8% in early trading. The company said it had hired consulting firm AlixPartners to help evaluate more opportunities for cost savings Lamb Weston is on track to deliver up to $450 million in total capital spending reductions by fiscal 2026 compared to fiscal 2024, CEO Mike Smith said in a statement. The company said in October it would cut 4% of its workforce and slash costs to mitigate the impact of weak demand from restaurants for its frozen potato products with consumers reining in non-essential spending. The Eagle, Idaho-based company regained sales it had lost last year as it moved to a new Enterprise Resource Planning (ERP) system, a software that helps businesses organize finance, inventory and human resources. Lamb Weston posted quarterly sales of $1.52 billion, compared with analysts' estimates of $1.49 billion, according to data compiled by LSEG. On an adjusted basis, the company logged quarterly profit of $1.10 per share, compared with analysts' estimates of 87 cents. Lamb Weston also reaffirmed its annual sales and profit forecasts. Jana Partners, which owns over 5% of Lamb Weston's shares, had been instrumental in naming insider Michael Smith as CEO in January. The hedge fund has also pushed the company to put itself up for sale.

Read the article

4/3/2025

BP’ Slow-carbon Mobility Team Axed as Company Reverts to Oil and Gas

Financial Times (04/03/25) Wilson, Tom

BP Plc (BP) is shutting its low-carbon mobility team in the energy major’s latest retreat from its five-year-old attempt to diversify away from oil and gas. The unit was responsible for developing electric, hydrogen, and other low-emission solutions for vehicles, particularly trucks. It is the most recent casualty of chief executive Murray Auchincloss’s plan to refocus BP on its legacy oil and gas business. Senior BP executive Martin Thomsen told staff on Wednesday that it was no longer “commercially viable” for BP to justify a dedicated team to the area. Any remaining activities would be allocated to other parts of the business, he added. In an effort to increase returns and boost BP’s share price, Auchincloss in February announced he was scrapping a five-year-old plan to become a major renewable energy player and cutting spending on green energy by 70%. The strategy shift followed news that Elliott Management had taken a near-5% stake in BP and was pushing for radical changes. Thomsen wrote in an email to staff on Wednesday: “As you know, and Murray has made very clear, we can see that the energy transition is moving at a slower pace than we had anticipated.” Projects in low-carbon mobility were developing “more slowly” and required “a lot of investment” at a time when the capital available to the wider division had been reduced, he added. On a call with staff on the same day, he was more direct. “We had a view of low carbon that didn’t happen,” he said, according to a person on the call. “We need to revert to the old BP — more oil and gas — and old-fashioned retail — petrol, diesel.” Thomsen is currently a senior vice-president in charge of emerging markets in BP’s customer and products division, which manages BP’s global network of petrol stations. He was recently promoted to head both BP’s global electric vehicle charging business, BP Pulse, and its retail network in Europe, following the departure of several senior leaders. Tracey Clements, a former Boots and Tesco executive, stepped down as the head of BP’s European retail network in January after three years with the company. She was replaced by the chief executive of BP Pulse, Richard Bartlett, who was appointed to run both businesses. Bartlett then announced his own resignation last month. The size of the low-carbon mobility team had already been significantly reduced before the announcement to nine people, from as many as 30 nine months ago, according to a person familiar with the changes. BP confirmed the decision to phase down and close the team. “As we focus our downstream businesses and activity we don’t believe we need to maintain a separate dedicated team to consider such future options,” it said. “Its activities will be integrated into our businesses.” BP added that the decision would not affect BP Pulse. The company said it remained focused on expanding its EV charging business in its four key markets of the UK, Germany, the U.S., and China, and on growing through joint ventures in India, Spain, and Portugal.

Read the article

4/2/2025

Chemical Manufacturer Makes Peace with an Activist Hedge Fund to Avoid Proxy Fight

Charleston Post and Courier (SC) (04/02/25) McDermott, John

A North Charleston global chemical manufacturer will avoid fireworks at its next shareholder meeting under a compromise with an investor that's been critical of the company's management. The deal, struck last weekend and described as a "cooperation agreement," gives Miami-based Vision One Fund LP one seat on the board of Ingevity Corp. (NGVT). The south Florida activist shareholder previously nominated four representatives as directors as it mounted a public proxy battle. It later cut its list to two names. Vision One's final nominee is F. David Segal, a former vice president at International Paper Co. Under the new agreement, he'll be appointed to the Ingevity board and audit committee shortly after the April 30 annual meeting of shareholders for a minimum one-year term. Vision One also said it has agreed to vote in favor of Ingevity's original slate of nine directors who are up for re-election. The hedge fund owns about less than 2% of the chemical maker's shares. It went public earlier this year with its concerns about the company's lackluster financial performance, slumping stock price, and a series of money-draining business deals. The firm also has pushed for numerous changes, including the replacement of longtime directors who have "presided over nine years of bad acquisitions" and an "erratic corporate strategy." Vision One said its nominees would "drive change" and challenge the rest of the board. The investor also has urged Ingevity to focus solely on its stable materials business and to offload its lackluster chemicals division rather than pursue a "piecemeal" plan to sell part of it, including a refinery in North Charleston. Ingevity said that it previously rejected the fund's board nominees, including Segal, after interviewing them, partly because of a lack of relevant industry experience. Vision One CEO Courtney R. Mather did not immediately respond to an April 1 request for comment about the cooperation agreement, which was filed Monday with the SEC. Ingevity was spun off as a publicly traded business in 2015, and it employs about 1,600 workers in 31 countries. Its shares are listed on the New York Stock Exchange and were trading Tuesday around $38, off nearly one-third from their 52-week high. Ingevity's annual meeting at the end of the month will be held virtually.

Read the article

4/2/2025

Greencore Agrees £1.2 Billion Deal for UK Ready Meal Rival Bakkavor

Financial Times (04/02/25) Kelly, Maxine

Greencore (GNCGF) has struck a deal to acquire rival UK convenience food group Bakkavor (BAKK) for £1.2 billion after being rebuffed with an earlier takeover offer. Pre-packed sandwich maker Greencore said on Wednesday that the acquisition would create an entity with a combined revenue of about £4 billion, as a wave of takeovers continues to shrink the number of companies listed on the London Stock Exchange. Greencore’s offer of 200p per share for Bakkavor — one of the UK’s largest makers of fresh food — represents a premium of 32.5% to Bakkavor’s closing share price on March 13. Bakkavor had last month rejected a 189p-per-share offer from Greencore, saying it “significantly undervalued” the FTSE 250 company. Greencore last year faced pressure from Hong Kong-based activist investor Oasis activist Management, its largest shareholder, to speed up its turnaround plan and improve shareholder returns. Its share price has risen more than 40% in the past 12 months. Greencore said on Wednesday that both companies’ boards had identified potential “substantial synergies” from the deal, including in their manufacturing, distribution, purchasing, and administrative functions. It also highlighted potential improvements to supply chains and greater “development opportunities” for employees. In November, Bakkavor was affected by staff strikes over pay that led to a supermarket shortage of taramasalata. The group’s shares have risen more than 60% in the past 12 months. If the deal goes ahead, Greencore shareholders would own approximately 56% of the combined group with Bakkavor shareholders owning 44%. The companies said the cash and shares offer, on which they had reached “agreement in principle,” would proceed subject to shareholder and regulatory approval. Greencore said Bakkavor had indicated its board would be “minded unanimously to recommend” the offer to its shareholders.

Read the article

4/2/2025

Palliser Capital Calls Out Rio Tinto Board Ahead of a Shareholder Vote on Its Dual Listing

The Australian (04/02/25) Thompson, Brad

Palliser Capital has accused the Rio Tinto (RIO) board of running scared on the eve of a vote on the future of the miner’s dual listed structure. Palliser chief investment officer James Smith said the fund wanted Rio to conduct a transparent review of unification and make the findings public so that shareholders could make an informed decision. “We are long-term holders of Rio shares and are focused on seeing value realized through best-in-class capital allocation,” he said. “In our conversations with Rio’s top shareholders, it is clear that they are interested in the value-enhancing potential of unification, but more important, all agree that more disclosure is better than less.” Palliser sees merit in Rio ditching its London listing because its shares trade at a higher premium on the ASX. Big investors and advisory firms remain at odds on the issue ahead of a London vote on Thursday. Mr Smith questioned why Rio’s board, including chairman Dominic Barton, had been so strident in opposing a review. “The vigor with which the company has resisted this request is telling that they fear the conclusions of an independent inquiry will run counter to their own preferences,” he said. “However, the board has an obligation to set its own agenda aside and do right by its shareholder base … the board would be best served by displaying best-in-class governance by conducting the full, fair, and transparent review that shareholders deserve.” Barton took aim at Institutional Shareholder Services after it backed the Palliser motion. In a letter to investors, he accused ISS of dismissing the material dual-listing unification costs and significantly overstating the benefits. He said ISS accepted incremental wastage of $US15bn of franking credits over the next decade as a price for unification, and told investors he had “significant concern” with some the advisory firm’s conclusions. The Rio board has been unanimous in recommending shareholders vote against the proposal and has described Palliser’s assertions of an alleged $US50bn of value loss due to the dual listing structure as “unfounded and misleading." Glass Lewis also supported the Palliser motion. “Rio’s response adds nothing new to the discussion on unification or to what has already been presented in the AGM notice,” Mr Smith said. Goldmans Sachs has warned ditching the dual-listed structure may cost the miner between $US7 and $US15bn and cruel its ability to continue paying fully-franked dividends to Australian shareholders. Rio has estimated the tax bill alone would be “mid-single digit” billions. Mr Smith worked at Elliott Management when it led a successful campaign for the unification of BHP’s listings in the UK and Australia.

Read the article